President Joko “Jokowi” Widodo has issued the Presidential Instruction No. 4/2016, which contains provisions regarding austerity measures and spending cuts in ministries and state institutions in the new and revised 2016 state budget. All ministries mentioned in the instruction have since begun to intensify their discussion with the House of Representatives to go over the budget cuts.

The Minister of Finance Bambang Brodjonegoro has signed the regulation (PMK) on the new non-taxable income (PTKP) for 2016. The PTKP has been adjusted with the expectation that the people would have a stronger purchasing power, which in turn would help with household consumption and stimulate economic growth.

On June 23, 2016, the Corruption Court of Central Jakarta District Court held the inaugural hearing on the case of corruption implicating the President Director of PT Agung Podomoro Land Tbk (APLN) Ariesman Widjaja and his aide Trinanda Prihantoro. Both men were charged with bribing the member of the Jakarta Regional Representatives Council (DPRD Jakarta) Mohamad Sanusi. Neither Arisman nor his aide raised any objection in the hearing.

The Corruption Eradication Commission (KPK) is intensively pursuing additional criminal charges for graft suspects, particularly in a move to revoke their political rights. But what is the legal basis in providing this additional penalty? What’s the track record in the courts when faced with the request to revoke a defendant’s political rights?

On June 22, 2016, the Corruption Court of the Central Jakarta District Court held their first hearing on the trial of attempted bribery conducted by two officials of PT Brantas Abipraya (Persero). In the indictment, the Corruption Eradication Commission (KPK) mentioned the parties who were supposed to receive the bribes. The question is, will the designated recipient be named as suspects?

The bankruptcy dispute between PT Asuransi Jiwa Bumi Asih Jaya (BAJ) and the Financial Services Authority (OJK) is not yet over. After the Supreme Court (MA) granted the OJK’s cassation for the execution of liquidation of BAJ’s assets last year, the insurance company’s legal counsel decided to file for a Reconsideration (PK) on June 21, 2016.

After having to redo the verification process as a result of mismatching bills, the bills verification process of PT Bumi Resources Tbk (BUMI) has been finally completed. The bills of bonds at issue has been verified by the team of administrators and declared entitled to participate in the creditors voting.

On June 20, 2016, the Ministry of Home Affairs has officially uploaded the list of 3,143 burdensome bylaws that have reportedly been canceled by the Government. But the list contains three categories: bylaws that must be immediately canceled, bylaws that must be revised to conform to superior regulations, and regulations or decree of the Minister of Home Affairs that must be canceled or revised.

On June 15, 2016, the panel of judges of the Corruption Court at the Central Jakarta District Court read the verdict on the case of the 4 ex-leaders of the North Sumatera Representative Council (DPRD) who were arrested for accepting bribes from the disgraced Governor of North Sumatera Gatot Pujo Nugroho. Investigation into this graft case, however, will continue. The next day, the Corruption Eradication Commission (KPK) named 7 suspects in the same case.

The process of Suspension of Debts Payment (PKPU) currently undertaken by PT Brent Ventura continues. The Company will reportedly offer the option of selling its assets and collection of accounts receivable in the peace proposal. But there has not been any definite offer. The Company is required to immediately send their peace proposal before the scheduled discussion with creditors takes place on July 18, 2016.